Electricity tax debate: Union and SPD continue to be far apart

Report from Berlin Union and SPD still far apart in electricity tax debate As of: October 25, 2026 • 7:49 p.m

The government agrees that companies and households should be relieved of electricity prices. But it is unclear how this can be financed. In the report from Berlin, the CDU and SPD made very different proposals.

Europe is experiencing angry protests these days - there will also be demonstrations in Germany next weekend. The reason: the recent sharp increase in the cost of living. Politicians are alarmed and have promised to quickly relieve the burden on citizens. However, it is still unclear how exactly this should happen and to what extent.

One building block - and point of contention - is the electricity tax. Politicians from the SPD and the Union have spoken out in favor of it - most recently Chancellor Friedrich Merz on Saturday at the CSU party conference. “If it works - and I think it does - then the electricity tax has to come down next year,” said the CDU chairman.

However, Federal Finance Minister and SPD leader Lars Klingbeil sees it differently. He is also fundamentally in favor of such relief, but asks how this should be financed. Because the tax cut would ultimately result in a shortfall of up to six billion euros in the budget. “We can’t promise anything that we can’t keep in the end,” Klingbeil makes clear.

In the report from Berlin, Saxony's Prime Minister Michael Kretschmer blames the black-red coalition in the federal government for the financing dilemma: "You can see how difficult it is when you stumble at the beginning of a government term. That's what happened," said the CDU politician. The big issues such as deregulation have not been addressed - that's why so much money is needed now.

Michael Kretschmer, Prime Minister of Saxony/Deputy. CDU party chairman, on financing relief for the economy Report from Berlin, Das Erste, October 25, 2026 • 6:00 p.m. Kretschmer referred to the Prime Minister's joint demand for cheaper electricity. "We said: If we want to maintain economic performance, this step has to come." Therefore, we now have to talk about, for example, certificate trading or the measures proposed by Economics Minister Katherina Reiche in the so-called network package. Otherwise Germany would lose touch.

This requires a cross-party approach. "Everyone has to give something." But everyone has to get something in return. The federal government would do well to listen to the state representatives. “In many respects, we always recognized earlier what was necessary. We were right,” said Kretschmer. The additional tax revenue in 2027 would also give Finance Minister Klingbeil the necessary leeway to reduce electricity taxes.

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Kretschmer's colleague Andreas Bovenschulte from the SPD sees it completely differently. The mayor of Bremen wants to counter-finance a reduction in electricity tax primarily through an excess profits tax for oil companies - a plan that is not well received by the Union. The corporations skimmed off massive profits amounting to billions during the crisis. “Let us finally reach into the pockets of those who previously reached into the pockets of the citizens,” demanded Bovenschulte.

Andreas Bovenschulte, Mayor of Bremen/SPD, on financing a reduction in electricity tax Report from Berlin, Das Erste, October 25, 2026 • 6:00 p.m. The SPD politician admitted that there has so far been no majority for this without the Union. But he hasn't given up trying to convince the CDU of an excess profits tax. "I cannot understand why the Union is blocking this sensible solution." Recently, the Advocate General at the European Court of Justice also declared that he considered an excess profits tax to be permissible, said Bovenschulte, with a view to legal concerns in the Union.

In addition, relief from electricity prices is not enough, according to the SPD politician. "We need an income tax reform that relieves the burden on small and medium incomes." Reasonable counter-financing also means that “those who can actually do more also make their contribution.” The state currently has many expensive tasks - it cannot be "just asking the little people to tighten their belts."

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This topic in the program: The First | Report from Berlin | Oct 25, 2026 | 6:00 p.m